About Limited Liability Partnerships - 'LLPs'

An LLP is a partnership which benefits from 'limited liability' for its members (i.e. owners). As a partner, you would benefit from the flexibility of a partnership and the company would be taxed as a partnership also.

These types of companies are generally formed by groups of professionals, such as Solicitors, Accountants and Doctors.

There is no limit as to the amount of members of an LLP.

Who Can Own And Run A Limited Liability Partnership?

An LLP must have at least 2 members who can be anyone of any nationality.

There is no limit as to the amount of Directors and Shareholders there are to such a Company.

Why Would This Type Of Company Be Formed?

The partners in an LLP aren't personally liable for debts of the business which it cannot pay, their liability is limited as to the amount of money they have invested into the enterprise.

Partners can agree internally as to how the share in profits is divided amongst the members. This provides such members of the business greater flexibility.

An LLP incurs no liability in respect of Corporation Tax, instead the members (partners) pay income tax on their salaries and withdrawals from the business profits. These members therefore are required to complete individual self-assessments each year and file the same with HMRC.

A corporate body can act as a member of an LLP, which again allows the other members greater flexibility in negotiating the terms in which that corporate body partner acts within the business, and how it may be entitled to make withdrawals of profits from the enterprise.

There is no requirement for LLP members to live within the UK.

Key Advantages of Limited By Shares Companies

Flexibility
Greater flexibility amongst members of the business to negotiate terms of structure, profit sharing and responsibilities amongst themselves.

Ability To Raise Capital
The members can invite other partners into their partnership if they wish at a 'buy in price'.

Company Name Protection
Once a Limited Company's name is registered with Companies House, no other Company in the UK can be legally permitted to use the same name.

Tax Efficiency
No corporation tax or capital gains tax liability.

Nationality and Location of Members
LLP members are not required to live in the UK or be british.

Taxation Advantages

Please see our taxation page where we explain the unique advantages of forming your business as a Limited Liability Partnership.

You Should Note

If you are wishing to register your new LLP to your home address, it is this address which will appear as the correspondence address on the public records for your business. If you don't wish to use your home address in order to protect your privacy, then you can benefit from our Registered Office Address Service.

Select the links below in our Address Services details to find out more.

Company Address Services

Registered Office Address

Benefit from having your privacy protected and give your company an instant professional image by using 1 Click 2 Start A Company's prestigious registered office locations. You can select whether you wish to register your new Company at the prestigious Grade 2 listed Cotton Exchange Building in Liverpool, or the financial district of London.

Enhance the professional appearance of your new company when interacting with Clients and Suppliers. Avoid having to use your home address when supplying your contact address on business cards, letterheads and company stationary, by using our Business Use Address which is based within a prestigious Grade 2 listed building in the UK.

All companies must provide to Companies House the service address of its Directors, Secretaries and Shareholders and these address are commonly presented as their residential address. The address provided is then registered and is readily accessible in the public domain. Protect your privacy by using our great value Company Officer Service Address.